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Recognizing the Value of Existing Hydropower June 25, 2009
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Table of Contents
Brookfield Asset Management – Overview
Brookfield Renewable Power – Overview
Hydropower is an Important Contributor to Renewable Energy in
NE and NY
Why is Hydropower Capacity Declining?
Policies
Pumped Storage
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Brookfield Asset Management | Overview
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Brookfield Asset Management is an asset management company, focused
on property, power and infrastructure assets
Approximately US$80 billion of assets owned and under management
Approximately 10,000 employees in the Americas, Europe and Australia
A global asset management company
120 million sq. ft.office and retail space
165 renewable power plants
2.5 million acres of timberlands
11,000 km of transmission lines
Brookfield Asset Management
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Brookfield Renewable Power | Overview
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Brookfield Renewable Power is a responsible developer, owner and operator of renewable power generation facilities
Brookfield Renewable Power has strong corporate values
– Long-term commitment to communities in which we operate
– High safety standards– Environmentally responsible
Brookfield Renewable Power is committed to growth on a value basis
Brookfield Renewable Power
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Brookfield Renewable Power
Brookfield Renewable Power is a leading producer and developer of renewable energy focused on:
– hydroelectric – wind
Over US$12 billion of assets owned and under management
Approximately 1,000 employees in North America and Brazil
Unique power operations focused on renewable energy sources
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95% of our production is sourced from renewable energy
Generating assets on 64 river systems
Over 100 years of power generating experience
Leader in hydroelectric power in North America and Brazil
Total Output Capacity
90%
5% 5%
Hydroelectric
Wind
Other
Hydroelectric Portfolio
Markets Stations MW
United StatesNew England 20 841New York 75 705PJM/MISO 4 168Louisiana 1 192
CanadaQuebec 6 286
Ontario 21897British Columbia 5 135
Brazil32 532
164 3,756
Brookfield Renewable Power
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Hydroelectric - New England
Operating Statistics
Installed capacity:
841 MW*
Annual generation:
1,828 GWh
Storage:
509 GWh
Generating stations:
20
Generating units:
68
- Located on five river systems in New Hampshire and Maine.
- New England assets are interconnected to the New England Power Pool.* Includes 600 MW Pumped Storage Facility
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Hydroelectric - New York State
- Located on 15 river systems in upstate New York.
- New York assets are interconnected to five different NYISO market zones.
Operating Statistics
Installed capacity:
705 MW
Annual generation:
3,025 GWh
Storage:
541 GWh
Generating stations:
75
Generating units:
180
Production Centers Installed Annual Capacity Generation Generating Generating
in MW in GWh Units Stations
Lake Ontario Operations 215 892 79 29St. Lawrence Operations 229 1,131 57 32Hudson River Operations 261 1,002 41 14
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Active Participant in New England and New York
New York– Own over 87% of all non-NYPA, non-utility owned/controlled hydropower in the state (13.5% of
all hydropower)– 12 NY projects participate in NY RPS Main Tier – selected via auction
Maine– Own over 20% of all hydropower in the state– Sell REC’s into ME RPS
New Hampshire– Own 5% of all hydropower in the state
Rhode Island– Participate in RI RPS
Massachusetts– Bear Swamp Pumped Storage is 8th largest power plant in state
Nationwide: 40% of Brookfield facilities are Low Impact Hydropower Institute (LIHI) certified 71% if our stations are 5 MW or under Participate in mandatory and voluntary attribute markets
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Hydropower is an Important Contributor to Renewable Energy in NE and NY
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63
14 x
28
47
414
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FERC-Licensed Hydropower in New England
198 Hydropower facilities in operation– 3500 MWs installed nameplate capacity
138 facilities are under 5 MW– 70% of all stations– 5% of all capacity
Source: FERC
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17%(49%)
1.6% (43%)
1.9% (46%)
11.5% (74%)
27.8% (79%)
11.5% (74%)
Hydropower Share of New England Generation
Hydropower is important share of overall electricity capacity
Hydropower generally makes up large percentage of overall renewable power capacity
Important to maintain if states are going to meet their clean energy goals
Source: EIA DOE, 2007 dataHydropower share of total capacity /
(percentage of all renewable capacity made up by Hydropower)
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Hydropower Installed Capacity Declining
Change in Hydro Capacity by State
0
1000
State
MW
1997
2007
1997 261 758 472 4 151 371
2007 259 718 308 4 122 494
MA ME VT RI CT NH
Installed Hydro Capacity - All New England
1200
1300
1400
1500
1600
1700
1997 2007
Year
MW
Installed Hydro MW
Source: EIA - DOE
14% Decline in Hydropower Capacity from 1997 to 2007 in
New England states
Only New Hampshire has had increase
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Why?
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Possible Reasons
70% of FERC-licensed hydropower project are under 5 MW– Re-licensing costs are the same regardless of size of facility– Environmental safeguards have same capital cost regardless of
size– Size correlates to power revenues– Commodity pricing– Revenues from other sources (RPS, Voluntary RECs, Capacity)
limited Do smaller hydropower projects face greater challenges than large
ones? Dam retirements Natural retirements – maintenance & replacement ESA – Atlantic Salmon, American eels
– Compliance costs
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Possible Policy Approaches
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Policy Approaches
Renewable Electricity Standards– Have been focused on new growth
Baseline set – hydropower often is the baseline Little attention to erosion of baseline or replacement costs Some include tier for small hydropower regardless of project age
– Some have tiers that include small hydropower regardless of project age – but usually compliance obligations/demand not robust
New York has Maintenance Tier– Current national RES bills do not include any pre-1992 hydro
Waxman-Markey supports wind, solar, etc. regardless of vintage Inclusion of Low Impact Hydropower Institute certified hydro as opposed to age
cut-off would help preserve good, existing hydropower– Most advanced environmental safeguards– Rewards “good behavior”
Cap and Trade– Putting a price on carbon creates demand and pricing incentive for renewables
But only if the program accurately prices carbon (doesn’t artificially lower it through allocation scheme)
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Pumped Storage
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Pumped Storage
Two New England states (Massachusetts & Connecticut) and New York have pumped storage
Totals 2,969 MW in 2007 (31 MW increase from 1997)
Net user of electricity 1.3 MW used : 1 MW generated
Important resource as more intermittent renewable resources are added to the grid
– Quick start – Dispatchable– Transmission firming
Policy approach: Recognize value of pumped storage role in green energy future – investment tax credits, etc.
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